SEC abandons surprise audit rule for certain advisers

The Securities and Exchange Commission dropped a proposal to require additional audits for investment advisers whose only fees are deducted from client accounts. The SEC also approved revised regulations that do not call for the audit of advisers that do not have custody of assets. Earlier this year, the AICPA made specific recommendations to the proposed rule amendments, including that the focus of the applicability of the surprise examination requirement be on advisers posing the greatest degree of risk. (Source: The Washington Post)